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May 30, 2003 General Assembly Wraps Up Session NASHVILLE--Senate Republican Caucus Chairman Ron Ramsey (R-Blountville) stated that he was proud of the way that the Senate Republicans held together and forced an eventual bipartisan compromise to the governor's proposed budget by reducing the impact on local governments. "I am proud of the way that the members of our caucus held together early in session on the issue of cutting state-shared taxes and worked with friendly responsible Democrats to come up with an alternative plan," stated Senator Ramsey. "The administration eventually compromised to the point that a budget was acceptable to a majority of the Senate members." Senator Mark Norris (R-Collierville) stated, "I was quite happy to see that the impact of cuts in state-shared taxes was reduced to about half of what was originally proposed in the budget. In addition, many of the mandates on local governments, particularly on our counties, were lifted. "I am particularly pleased to see that we have a promise that TennCare will finally become accountable to the General Assembly. In an unprecedented move, the Commissioner of Finance and Administration came into the well of the Senate and pledged to do an accurate verification of the rolls of those on the TennCare Program and to address the audit issues that have gone unheeded for a decade. These items should be done by January 1 before we return for the next year of session. "I thought that we should have held out for a full restoration of all state-shared taxes and voted for our alternative plan that I considered the fairest plan of all as far as local governments are concerned. We managed to get about half of what we wanted this year. If the economy improves, rest assured we will come back and push for a full restoration of state-shared funds next year," concluded Senator Norris. Members of the Senate Republican Caucus worked diligently for months to build a bipartisan coalition with responsible Democrats in order to provide needed relief for local governments. First, the administration agreed to remove some of the more onerous elements from its original proposal and then the eventual House Plan removed even more of the mandates and punitive aspects from the Administration Plan. Instead of a $60.7 million direct hit on local governments, that aspect was reduced to some $37.2 million with an additional adjustment of $1.5 million in mitigation money for select cities which took an inordinate hit from the diversion of their state-shared Hall Tax. We are in much better shape than most states. According to committee testimony by the state Comptroller, revenue projections are coming in quite close to anticipated collections and the real problem has been overspending in TennCare. What really made the budget process difficult this year was a redirection of up to 9 percent of the funding resources away from virtually every department in the state with the exception of TennCare and K-12 education which both saw substantial increases in spending. The proposed total new spending in TennCare amounts to $1 billion annually in the program that was first described as "problem-plagued" in March 1994, less than 90 days after it began under the McWherter administration which administered the first two years of the problematic program. The increase in the state appropriation to TennCare is over $327 million, the largest planned dollar increase in the history of the program which has required additional unplanned funding from state reserves every year. The total planned budget is about $21.5 billion, up from last year's $20.2 billion planned budget which has been revised to some $20.43 billion in the current Fiscal Year 2002-2003 budget that ends June 30, 2003. The federal government will provide some $20 billion in additional aid to states this year with Tennessee receiving between $400 million and $500 million that is not currently accounted for yet in the state's new budget. Many members hope that the administration wisely sets aside those dollars in reserves until the General Assembly reconvenes in January. Key bills: Appropriations Bill - House Bill 2074/Senate Bill 1994 Omnibus Bill House - House Bill 2073/Senate Bill 1991 * * * MAC Placeholder Claims Staked NASHVILLE--The Commissioner of Finance and Administration reported back to the Senate Education Committee Wednesday that it had finally filed the appropriate paperwork and claims with the Center for Medicare and Medicaid Services (CMS) regarding an issue pushed to prominence this year by Senator Mark Norris (R-Collierville). "I am very pleased to learn that the administration, particularly my friend Commissioner Dave Goetz, has acted responsibly in ordering TennCare to file the appropriate paperwork whereby Tennessee can recover reimbursement for work already performed by our K-12 Education System," stated Senator Norris. "Tennessee was losing millions of dollars each year. We expect this corrective action to save the state over $20 million per year." Senator Norris passed Senate Resolution 13 in March instructing those responsible to do what is necessary to reimburse school systems funds lost due to TennCare inaction. On May 14, Senator Norris exposed a continuing TennCare credibility gap during a Senate Education Committee meeting by unveiling the ongoing failure on the part of the TennCare Bureau to file the proper paperwork to collect federal funds local governments had already earned under the Medicaid Administrative Claim, or "MAC," Program. The MAC Program provides federal reimbursement to local Tennessee school systems for administrative activities performed to link children to the TennCare Program and needed health services. School systems in the state began the quarterly claiming process during the 2000-2001 school year, according to the Tennessee School Boards Association (TSBA). TSBA also points out that TennCare should submit placeholder claims for all eligible quarters in which Tennessee school systems have participated, in good faith, in the data collection process of the program. Senators David Fowler (R-Signal Mountain) and Randy McNally (R-Oak Ridge) are co-sponsors of SR 13. * * * Norris TennCare 'Fix-It-or-Switch-It' Bill Provides Option NASHVILLE--Senator Mark Norris (R-Collierville), who seeks to contain the cost of TennCare, worked House Bill 1386/Senate Bill 998, the TennCare Stabilization and Wind-Down Bill, through the full Senate Wednesday. "I appreciate the support of the General Assembly in passing this vital bill," stated Senator Norris. "It's high time that Tennessee stops robbing other state programs to fund the 'problem-plagued' TennCare Program. It's time for someone to 'fix the mess.'" The TennCare Wind-Down Bill looks for a TennCare Viability Report by Jan 15, 2004, and updates on flexibility in the program under federal law. If the Viability Report cannot state conclusively that the TennCare Program can be saved, it requires a plan of action for Winding Down the TennCare Program, including a pro forma wind-down budget, and an outline of an alternative program. When the bill was first heard in committee, one frustrated committee member cited a Fiscal Note for the bill which states: "The TennCare Bureau could not provide information on the number of out of network emergency room visits but believes there are a substantial number each year." This shockingly striking example was given as an illustration of the almost decade-long history of legislators being unable to obtain valid numbers for the true costs of the TennCare Program so that it is accountable to taxpayers. Senator David Fowler (R-Signal Mountain) is a co-prime sponsor of the bill.
Bills, Bills, Bills * * * All things considered: As of 4:30 p.m. (CDT) Thursday, May 29, the Senate has 2,050 Senate bills filed, while the House has 2,133 bills filed. Senate Joint Resolutions now number 624; House Joint Resolutions 727; Senate Resolutions 109; and House Resolutions 212. The start of session Thursday morning saw the Senate begin its 47th day and the House its 42nd day of the 90 regular session days allowed every two years under Article II, Section 23 of the Constitution for a regular session. The Senate and House are adjourned until the second Tuesday in January (January 13, 2004) unless called back in for an extraordinary session. * * * Senate Floor Actions * * * Senate Resolution 107 by Senator McNally (R-Oak Ridge) passed through unanimous consent of the Senate Thursday to direct the Select Oversight Committee on Education to study the governance system of higher education in Tennessee. * * * HB 1411/SB 1270 by Senator McNally passed the Senate unanimously Wednesday to require that expenditures of any higher education foundation benefiting a state institution of higher education be subject to audit. The bill applies to the UT Foundation which voluntarily agreed on Wednesday to subject itself to the Open Meetings Act. * * * |
